Incentivised Scheme for Early Retirment
- Thread starter zztop
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I know (having checked my own situation) that persons on reduced working weeks have their pension calculated on the full salary. To do otherwise would be a double penalty, because we accumulate pension years more slowly.
I presume it's the same for term-timers. The salary used to calculate pension is the full rate, but the person only accumulates 9 or 10 months reckonable service in any calendar year.
It's not available for areas where vacant posts are being filled as the government's intention is that those retiring will not be replaced.
I would imagine that the reason that psychiatric nurses cannot avail of it is to do with the fact that most psych nurses can already retire at 55 so an early retirement scheme is already in place. Not to do with the fact that vacant posts will be filled for these retirees.
aonfocaleile
Registered User
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The details of the scheme have been published - www.finance.gov.ie
On first glance, it seems to have quite a broad remit (i.e. applies to much of the public sector rather than just the civil service)
On first glance, it seems to have quite a broad remit (i.e. applies to much of the public sector rather than just the civil service)
Funny enough, when I read it, my initial impression was that it is quite restrictive. You have to have your mind made up and be gone by 30th Nov. latest. By that date no one will know the details of the budget, thereby cutting out the option of hanging on to see if the Lump Sum will be taxed next year. The lates rumour on that count is that there's a mood among senior Public & Civil Servants to mount a legal challenge to the taxing of the L.S.
I think that's the whole point - people who are 50 have to make their minds up fairly quick. They need to get the numbers down.
There is one in our section who is eligible and hadn't made up her mind. My boss would have been able to handle losing her as I cross cover her section but my section being relocated so boss might lose her 2 best staff members
before the end of the year.Jeepers, you were up late too, Becky. I have someone near and dear to me who has 39 + years service and will not be 60 until end of 2010. Dilemma: Jump ship now and get non actuarilly reduced L.S. and almost full pension or go on till 60 and risk a lump off your L.S. OR try and persuade the boss to wangle a deferment until 40 yrs service is reached in mid 2010 ???
J
jaygee
Guest
I think that the precise reference to taxation at current rates implies that if people do not avail of this scheme, future lump sums will be taxed in some way. Although the mention of a legal challenge to this has been mentioned, that's leaving the situation up in the air if people do not avail of the scheme within the timeframe, in my opinion. I would imagine deferment would be minimal based on the wording of the Circular. This whole thing could lead to a total drain of the most experienced people in my organisation and you couldn't blame them if the whole taxation thing isn't clarified beforehand.
I have a suspicion that it may be a damp squib also. Tight timeframe, restricted opportunities to enter service again. I would think that when people study the circular fully,they will realise that it is couched in such a way that it will apply to a relatively narrow band of employees.
Many teachers receive over 100k in the lump-sum.
Many retire on 70-75k, so the lump-sum would be 105-115k.
J
jacmac
Guest
Does anyone know whether this applies to university employees? I have tried to contact our HR but all to no avail. I had assumed that a notice would go up but there has been no mention of this scheme.